Goldman Sachs Raises Global Music Market Forecast
The music industry reached $31.7 billion in 2025 as streaming and physical sales outperformed expectations.
Updated on Oct. 21, 2026 in Music — General
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Goldman Sachs reports the global recorded music market grew 6.4% in 2025 to reach $31.7 billion, surpassing prior industry expectations by 60 basis points. Gains were driven by subscription streaming and a resilient physical sales market.
Why it matters
The report highlights a robust monetization strategy involving subscription price hikes and live event integration that continues to support sector growth. Meanwhile, synch and performance rights face continued pressure as they recover from the impact of the 2023 Hollywood writers strike.
Overall streaming revenue increased 7.7% in 2025, with subscription streaming growing by 8.8%. Physical sales grew 8% year over year, bolstered by a nearly 14% rise in demand for vinyl records.
The players
Goldman Sachs
Goldman Sachs is a leading global investment banking and financial services firm that provides analysis on industry trends and economic forecasts.
The details
Industry growth is supported by companies successfully targeting emerging markets and implementing bundled subscription offerings. Conversely, synch revenue contracted by 2.0% as the sector navigates a slower-than-anticipated rebound from previous labor disruptions.
Timeline
2023: The Hollywood writers' strike caused industry disruptions.
2025: The global recorded music market reached $31.7 billion.
2026: Retail revenue growth is projected to reach 6.7%.
2025-2035: The forecasted compound annual growth rate is 5.8%.
Industry Dynamics
The current music market trajectory is heavily influenced by the recovery from the 2023 Hollywood writers' strike, which hampered growth in the synch and performance rights sectors. Despite this, the industry's shift toward aggressive subscription bundling mirrors broader trends in digital media monetization.
Consumers should expect continued shifts in music subscription pricing and more bundled service offerings as platforms chase growth in emerging markets. These strategies reflect a push by streaming providers to maximize average revenue per user through more complex service packages.
The takeaway
The music industry continues to demonstrate significant resilience through diversified revenue streams like vinyl and subscription models. Investors and listeners alike should watch how ad-supported platforms evolve as their current growth rates begin to moderate.
Further reading
For more industry updates, visit our Music — General section.
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